'From heavy equipment to lip balm'

CEDAR RAPIDS - The City Council this week approved a plan to create a new urban renewal area and special taxing district as an incentive for local firm Raining Rose, which previously announced its intention to tear down an old industrial site at 3015 First Avenue SE and 100 30th St. Dr. SE and build a new plant on it.

The company, a manufacturer of natural body care products at 407 Ninth Ave. SE, plans to construct a 122,000-square-foot, two-story manufacturing facility for its new location with the help of state and local incentives.

City Council member Don Karr said he recalled when the old industrial site along First Avenue East was home to an Allis Chalmers' heavy-equipment plant.

"From heavy equipment to lip balm," Karr said.

Jennifer Pratt, a planner with the city's Community Development Department, told the City Council this week that Raining Rose would invest $13 million in the new site while retaining 97 jobs and creating 15 new ones. The investment, some of which is in equipment, will add $4.2 million in assessed property-tax value to the property. The city will contribute $676,385 to the project with revenue from future property taxes collected from the site as a result of Raining Rose's investment.

Pratt said Raining Rose also has received these other incentives: a $100,000 state forgivable loan; a state tax credit of $1,043,889; a $232,500 state sales tax refund; a $230,282 state research credit; and $165,600 in local job training funds for use at Kirkwood Community College.

She said the city and Raining Rose should have a proposed development agreement in place for the council to review in November.